County backs LLC concept with split vote

Commissioners OK incentives for 'Project Soft'

Published: Tuesday, September 10, 2013 at 9:58 p.m.

Last Modified: Tuesday, September 10, 2013 at 9:58 p.m.

Davidson County commissioners were divided again Tuesday over a proposed industrial park to be built off of Interstate 85 near Linwood.

Board members voted 4-3 to approve a resolution supporting a "joint" effort to develop the first phase of the park, which was originally part of a former 2,000-acre megasite plan.

Language in the resolution referred to the concept of building the park under the umbrella of a limited liability company. Officials with the Davidson County Economic Development Commission, including executive director Steve Googe, say landowners and other stakeholders would put their assets into an LLC. Then, if a company were to purchase property at the site, members of the partnership would share the profits.

The board discussed the possibility of the county acquiring the land for the park earlier this year, but most conversation has revolved around the LLC in recent months.

Commissioners Steve Jarvis, Todd Yates and Billy Joe Kepley dissented in the vote. Jarvis and Yates have questioned the project all along and have asked for more information from the EDC as well as specifics on the LLC. Kepley said he won't support the park until a new high school is built to ease overcrowding issues at Ledford and North Davidson high schools.

There was little debate amongst commissioners before the vote on Tuesday.

"This is just a document to give us a framework to start from and let everyone else know we still support this," Davidson County Commissioner Sam Watford said. "This is going to have to be a community effort."

Davidson County Manager Robert Hyatt confirmed this week that the EDC is drafting the document that details how the LLC would be structured. Hyatt said that document will be reviewed by the county before it's approved.

It's still unclear how many partners would be included in the overarching entity, and the resolution said it will include "private landowners and other potential partners."

Other partners could include non-profits, private corporations and area municipalities.

Googe has made presentations about the park to various governmental boards, including the Lexington and Thomasville city councils and Midway Town Council, this year. In addition, if the project moved forward, Lexington would most likely be asked to extend water, sewer and gas lines to the site, which could come at a total cost of about $1.4 million, according to estimates provided to the EDC.

Officials from Norfolk-Southern Railroad, Duke Energy and Windstream Communications have also sent Googe letters in recent years saying they would be willing to provide services and cooperate in an industrial park project.

Additionally, the North Carolina Department of Commerce awarded the EDC a $1.67 million Megasite Grant for land acquisition of a park larger than 1,000 acres. The grant will terminate at the end of the year, with the option to extend, according to the grant agreement.

Development of the first phase, which encompasses about 250 acres, is estimated to cost about $7.6 million. The entire, three-phase park is projected to be 1,100 acres and expand south of Belmont Road adjacent to I-85.

Davidson County Commissioner and EDC board member Larry Potts said the resolution helps move things forward.

"I think this embodies the idea and the principles we have, to get this process started with our state partners and our city partners," Potts said. "All this is, is a resolution. This is not a working document yet."

Board approves incentives

Commissioners also unanimously improved a $172,800 economic development incentives package for an unnamed company considering relocating to Davidson County.

The company, which is being referred to as Project Soft, is a Korean-based nonwovens manufacturer, said Rebekah McGee, a project coordinator with the EDC.

McGee told commissioners the company has several facilities in the United States and Davidson County is one of several areas being considered in the southeast.

Project Soft proposed to invest $12 million in the county and create 72 jobs with an average wage of $45,000 over a five-year period.

If the company located to the county and met its investment and jobs requirements, the county would make annual payments to the company not exceeding $34,560 for five years.

After Yates asked how many of the 72 jobs will be local, McGee said she was not sure.

"The majority of them are supposed to be local," Davidson County Commissioner Fred McClure said.

Nash Dunn can be reached at 249-3981, ext. 227, or at nash.dunn@the-dispatch.com. Follow Nash on Twitter: @LexDispatchNash

<p>Davidson County commissioners were divided again Tuesday over a proposed industrial park to be built off of Interstate 85 near Linwood.</p><p>Board members voted 4-3 to approve a resolution supporting a "joint" effort to develop the first phase of the park, which was originally part of a former 2,000-acre megasite plan.</p><p>Language in the resolution referred to the concept of building the park under the umbrella of a limited liability company. Officials with the Davidson County Economic Development Commission, including executive director Steve Googe, say landowners and other stakeholders would put their assets into an LLC. Then, if a company were to purchase property at the site, members of the partnership would share the profits.</p><p>The board discussed the possibility of the county acquiring the land for the park earlier this year, but most conversation has revolved around the LLC in recent months.</p><p>Commissioners Steve Jarvis, Todd Yates and Billy Joe Kepley dissented in the vote. Jarvis and Yates have questioned the project all along and have asked for more information from the EDC as well as specifics on the LLC. Kepley said he won't support the park until a new high school is built to ease overcrowding issues at Ledford and North Davidson high schools.</p><p>There was little debate amongst commissioners before the vote on Tuesday.</p><p>"This is just a document to give us a framework to start from and let everyone else know we still support this," Davidson County Commissioner Sam Watford said. "This is going to have to be a community effort."</p><p>Davidson County Manager Robert Hyatt confirmed this week that the EDC is drafting the document that details how the LLC would be structured. Hyatt said that document will be reviewed by the county before it's approved.</p><p>It's still unclear how many partners would be included in the overarching entity, and the resolution said it will include "private landowners and other potential partners."</p><p>Other partners could include non-profits, private corporations and area municipalities. </p><p>Googe has made presentations about the park to various governmental boards, including the Lexington and Thomasville city councils and Midway Town Council, this year. In addition, if the project moved forward, Lexington would most likely be asked to extend water, sewer and gas lines to the site, which could come at a total cost of about $1.4 million, according to estimates provided to the EDC.</p><p>Officials from Norfolk-Southern Railroad, Duke Energy and Windstream Communications have also sent Googe letters in recent years saying they would be willing to provide services and cooperate in an industrial park project.</p><p>Additionally, the North Carolina Department of Commerce awarded the EDC a $1.67 million Megasite Grant for land acquisition of a park larger than 1,000 acres. The grant will terminate at the end of the year, with the option to extend, according to the grant agreement.</p><p>Development of the first phase, which encompasses about 250 acres, is estimated to cost about $7.6 million. The entire, three-phase park is projected to be 1,100 acres and expand south of Belmont Road adjacent to I-85.</p><p>Davidson County Commissioner and EDC board member Larry Potts said the resolution helps move things forward.</p><p>"I think this embodies the idea and the principles we have, to get this process started with our state partners and our city partners," Potts said. "All this is, is a resolution. This is not a working document yet."</p><p><B>Board approves incentives</B></p><p>Commissioners also unanimously improved a $172,800 economic development incentives package for an unnamed company considering relocating to Davidson County.</p><p>The company, which is being referred to as Project Soft, is a Korean-based nonwovens manufacturer, said Rebekah McGee, a project coordinator with the EDC. </p><p>McGee told commissioners the company has several facilities in the United States and Davidson County is one of several areas being considered in the southeast.</p><p>Project Soft proposed to invest $12 million in the county and create 72 jobs with an average wage of $45,000 over a five-year period.</p><p>If the company located to the county and met its investment and jobs requirements, the county would make annual payments to the company not exceeding $34,560 for five years.</p><p>After Yates asked how many of the 72 jobs will be local, McGee said she was not sure.</p><p>"The majority of them are supposed to be local," Davidson County Commissioner Fred McClure said.</p><p>Nash Dunn can be reached at 249-3981, ext. 227, or at nash.dunn@the-dispatch.com. Follow Nash on Twitter: @LexDispatchNash</p>